Wynyard Group capital raising?

[percy]

RR has interestingly been left off the Wynyard board.

Very positive move.!! lol.

[percy]

Getting that "rusty bucket" look.!!!!!

[Banksie]

It would seem that in the $3.6m outlined for listing costs, Wynyard forgot to hire a PR firm.

The Herald article this morning is best described as "less than helpful".

http://www.nzherald.co.nz/business/n...ectid=10890951

Bit of fluff from stuff

http://www.stuff.co.nz/business/mone...ough-investors

[CJ]

I feel they have stuffed the IPO up trying to airbrush over certain key areas

Do you care to elaborate?

and doing the raising ass backwards by giving people bids on number of shares rather than amount of $$$ they want to invest before even indicating a price (leaving you either covering your ass hard if your too aggressive or without as many as you wanted if you are too conservative!).

While not a fan of the whole book build thing, I do understand why it is done. Hopefully the institutions get it right.

[CJ]

Wynyard is coming to the market a year earlier than they should be, IMHO.

Your probably right. I hope they aren't planning on replicating XRO and DIL and dropping in price after IPO. They should (hopefully) list at the lower end of the range to ensure that doesn't happen.

I dont expect much of a pop and I acknowledge that further fund raising will be required. I hope they dont have to do a down round - that should be their key thought when pricing the IPO.

Disc: I have put my hand up for a small holding.

[TimmyTP]

I have to admit to puzzlement over some of the statements about WYN not being the best of the best, WYN not being profitable and the presence of established competition.

All of those statements are totally valid: this is capital raising to fund development of a business after all, not a SOE float.
I see a venture that needs to buy some IP and other assets as an established base from which to build its business. They need to invest in all the usual things that will enable them to win more contracts and eat into the big boys' % of market share – and they probably will have to come back for more in 2 years' time.

As I understand it, some of the areas that WYN intends to target will require a heap of patience, hard work and expensive dinners. They are highly unlikely to pull the rug from Thomson Reuters or Palantir by Christmas – more likely they will get a chance to prove themselves here and there, long before they could go head-to-head with the big boys.

Possibly the reason I look from this perspective is that I have worked in a company with a similar profile; a minnow when I joined, up against it, building software to sell to huge corporates, competing against the big boys. That firm is now dominant in their niche globally and worth just shy of 200x their listing price. So I know it's possible (if not probable!) and you don't have to start as the biggest, most accomplished or most heavily funded.

All that said, this would be only a small percentage of my portfolio, none of which is funded by any form of debt, nor my last few cents (hence I can bear a range on the IPO price vs a $ amount). This as a long-term, high-risk investment for me, but that's OK because I happen to have room for a bit more of that.

Good luck to everyone, in or out.

[CJ]

All of those statements are totally valid: this is capital raising to fund development of a business after all, not a SOE float.
I see a venture that needs to buy some IP and other assets as an established base from which to build its business. They need to invest in all the usual things that will enable them to win more contracts and eat into the big boys' % of market share – and they probably will have to come back for more in 2 years' time.

Arguably they could have done it differently, which would have looked better but had the same result - ie. WYN acquire all the IP from Jade for the issue of shares. An IPO of existing shares by Jade and $26m of new shares. Same result but current method does derisk Jade which I guess was the idea.

[etrader]

Book build closed today and a little negative press by some fundies who clearly weren't getting an allocation might have pushed the price down a little.

Personally I'm hoping to pick up minimum allocation Nd have followed the MD over the years And am happy to back his leadership.

[mcdongle]

Just been told $1.15

[Balance]

I wonder if they have missed the market by 2 months.

This stock in April would have shot up like a rocket. But volatility and nervousness has crept back into investor minds over the last month or so.

Hence the $1.15, rather than $1.60?